Even as stocks hit record highs, one technical analyst says that the rally is not all it's cracked up to be.
Many investors flocked to stocks during the rally, while big bank earnings and strong retail sales data drove stocks higher. However, Cornerstone Macro's Carter Worth says that equity performance has actually been rather disappointing.
"I think the issue here is that we know on an absolute basis, one has nothing to show for having been in the market now since May of a year ago," said Worth recently
Investors can get bullish at highs, and bearish at lows, said Worth. That said, "nothing's happened ...in fact [for ]a very long time on a risk-adjusted basis," citing his chart work showing year-over-year change for key assets.
'Have to go meaningfully higher'
When weighed against other key indicators like treasury bonds,gold and real estate—nearly all up in the double-digits—stocks are the worst-performing major asset class since last May, up less than one percent.
"We would have to go meaningfully higher," said Worth, "to start to compensate for the risk that's been associated with owning equities not only for the last 18 months, but for quite some time."
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